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The determinants of bank’s profitability : evidence from the Jordanian banking sector (1992 – 2006)
Other Title(s)
محددات ربحية البنوك الأردنية في الفترة بين 1992-2006
Joint Authors
Mashharawi, Fadi Y.
al-Zubi, Khalid Abd al-Al
Source
Jordan Journal of Business Administration
Issue
Vol. 5, Issue 3 (30 Sep. 2009), pp.403-414, 12 p.
Publisher
University of Jordan Deanship of Academic Research (DAR)
Publication Date
2009-09-30
Country of Publication
Jordan
No. of Pages
12
Main Subjects
Financial and Accounting Sciences
Topics
Abstract AR
تختبر هذه الدراسة محددات ربحية البنوك الأردنية خلال الفترة 2006–1992.
و تقوم بالاعتماد على عينة مكونة من عشرة بنوك أردنية.
و قد تم استخدام ثلاث مجموعات من المتغيرات المستقلة تتضمن المتغيرات الخاصة بالبنوك، متغيرات الهيكل المالي، و متغيرات الاقتصاد الكلي الأردني.
باستخدام تقنية الانحدار المشترك (pooled data regression) ضمن طريقة أقل المربعات (OLS) و طريقة الانحدار الظاهري (SUR).
و قد دلت النتائج على أن نسبة المصاريف التشغيلية هو أكثر المتغيرات تأثيرا في ربحية البنوك (OVERHD)، يليه متغير الحجم النسبي (RSIZE)، ثم نسبة التركز (CR3)، و من ثم النمو الاقتصادي (GRTH).
Abstract EN
This paper examines the determinants of the Jordanian bank's profitability during the time period 1992 - 2006.
Data set comprises a sample of ten Jordanian banks.
Three categories of explanatory variables are used include, bank specific variables, financial structure variables, and macroeconomic factors.
Using pooled data regression, under ordinary least square (OLS) and seemingly unrelated regression (SUR), the results indicate that the most important factors that affect bank's profitability are overhead ratio (OVERHD), relative size (RSIZE), concentration ratio (CR3), and economic growth (GRTH).
Accordingly, banks need to better handle their overhead expense and monitor their cost.
Also, small banks should seek to increase their competiveness to face the concentration of large banks.
American Psychological Association (APA)
Mashharawi, Fadi Y.& al-Zubi, Khalid Abd al-Al. 2009. The determinants of bank’s profitability : evidence from the Jordanian banking sector (1992 – 2006). Jordan Journal of Business Administration،Vol. 5, no. 3, pp.403-414.
https://search.emarefa.net/detail/BIM-264281
Modern Language Association (MLA)
Mashharawi, Fadi Y.& al-Zubi, Khalid Abd al-Al. The determinants of bank’s profitability : evidence from the Jordanian banking sector (1992 – 2006). Jordan Journal of Business Administration Vol. 5, no. 3 (2009), pp.403-414.
https://search.emarefa.net/detail/BIM-264281
American Medical Association (AMA)
Mashharawi, Fadi Y.& al-Zubi, Khalid Abd al-Al. The determinants of bank’s profitability : evidence from the Jordanian banking sector (1992 – 2006). Jordan Journal of Business Administration. 2009. Vol. 5, no. 3, pp.403-414.
https://search.emarefa.net/detail/BIM-264281
Data Type
Journal Articles
Language
English
Notes
Include bibliographical references : p. 413
Record ID
BIM-264281